Financial structure of IMF:

The capital or the resources of the Fund come from two sources:

(i) Subscription or quota of the member nations, and

(ii) Borrowings.

Each member country is required to subscribe an amount equivalent to its quota. It is the quota
on which credit facilities, payment obligations, and voting right of members are determined. As
soon as a country joins the Fund, it is assigned a quota which is expressed in Special Drawing
Rights (SDRs).

The Fund is authorized to borrow in special circumstances if its own resources prove to be
insufficient. It sells gold to member countries to replenish currency holdings. It is entitled to
borrow even from international capital market. Though the Articles of Agreement permit the
Fund to borrow from the private capital market, till today no such use has been made by the IMF.